Zee in talks with creditors to close Sony merger

20 Apr 2023 , 02:15 PM

Zee Entertainment Enterprises has stated talks with its creditors regarding settlement by repaying debts and remove the last hurdle in completing a merger with the Sony Group that would create a $10 billion media giant, according to people familiar with the matter.

As per various reports, the company is in talks with its creditor, IDBI Bank, which moved court for insolvency, to repay a loan of about 1.49 billion rupees ($18.1 million) in tranches. Zee’s founders are in separate discussions with Axis Bank Ltd. and JC Flowers & Co.’s asset reconstruction unit to settle dues of 400 million rupees each made to entities controlled by them.

Several creditors of the company and its founders turned to the bankruptcy court for repayments. Just last month, the company paid off debts to one lender, IndusInd Bank Ltd. and the lender will withdraw its objections to the merger, Zee said in the filing.